Roberts Construction Company paid $40 000 for equipment with a market value of $45 000. At which of the following amounts should the equipment be recorded?

Name: Roberts Construction Company paid $40 000 for equipment with a market value of $45 000. At which of the following amounts should the equipment be recorded?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The equipment should be recorded at its cost, which is the amount paid for it, $40,000, according to the historical cost principle in accounting.

Roberts Construction Company Paid $40 000 for Equipment with a Market